That red knob is the valve wheel for a 3/4" garden hose spigot.
Some previous owner replaced the OEM garden hose connection that American Appliance used on their RV water heaters.
You could replace it with a 3/4" CAP or 3/4" PLUG (depends on which part breaks loose----female hose bibb or male nipple in tank)
I would be VERY leery about trying to remove......no place to get a back up wrench on while trying to break loose hose bibb. May end up completely damaging drain hole threads OR thread bung cracking tank (part with threads welded to tank)
Unfortunate that the bibb wasn't turned sideways so garden hose could be connected and do a power flush thru Relief Valve.
You might have better luck putting a wrench on flats (bottom of hose bib next to tank) and then disassembly hose bibb (separate it just above hose connection)
Unscrew valve body remove valve stem/seal.
Clean out valve body....replace seal on end of stem, repack stuffing box (ACE Hardware will have parts)
Is it time for your medication or mine?
2007 DODGE 3500 QC SRW 5.9L CTD In-Bed 'quiet gen'
2007 HitchHiker II 32.5 UKTG 2000W Xantex Inverter
US NAVY------USS Decatur DDG31